Cryptocurrency Vs Gold, Investing In Which Can Make You Rich?

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Cryptocurrency trading has become common practice now. Investors are increasingly flocking to this volatile market, while we also know that the future of the crypto market is extremely difficult to predict. The meme currency Dogecoin, along with Bitcoin and Ethereum, saw tremendous growth this year, but the recent market crash caused all cryptocurrencies to fall to half their price. This is the specialty of this market. Here you can become rich overnight or vice versa. This is the reason why there are still many people who are not sure about the long and bright future of cryptocurrencies and are better off investing in gold instead. Gold is a traditional hedge against currency devaluation and volatility. So, what is the better investment in this case? In other words, let’s see which of these assets would make you rich today if you had invested earlier this year.

Bitcoin has been known as “digital gold” all last year, because the digital currency was at its peak during the COVID-19 pandemic when the world economy was in turmoil. The cryptocurrency attained a market cap of around $1 trillion in early 2021 and is directly compared to gold as a rival. But then, the market crashed and in May this year its price came down to the two-month old price.

According to CoinMarketCap, the price of bitcoin in India was slightly higher than $29,300 (Rs 21.38 lakh) on January 1 this year. At the time of writing this report, it was trading at around $37,600 (Rs 27.44 lakh), a rise of almost 30 per cent despite the market downturn.

At the same time, on June 3, the price of gold in the international market was $ 1,904.36 (about Rs 1.39 lakh) per ounce (31 grams). On Tuesday (June 1), the price of gold had reached its highest level since January 8 at $ 1,916.40 (about Rs 1.39 lakh). According to goldprice.org, between January 1 and June 4, the price of gold was stable at around $1,893.66 (about Rs 1.38 lakh) per ounce.

If you had invested Rs 10,000 in each of the two on January 1, your bitcoin investment would have grown 30 percent to Rs 13,000 today, but your investment in gold would have remained largely the same.

Let’s look at this to make it more fun. If you had invested Rs 10,000 in the mime currency DodgeCoin on 1st January, your investment would have increased 100x today, on 4th June. According to CoinMarketCap, the price of Dogecoin in India increased from $0.004 (approximately Rs.0.30) on January 1 to $0.39 (approximately Rs.28) on June 4.

However, the recent volatility in the cryptocurrency market shows that no matter how much returns bitcoin and dodgecoin give, gold is more stable than cryptocurrencies and is therefore considered a safe investment. However, it is difficult to come out of the debate on this issue.

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